DeFi and NFTs have gone through rapid growth followed by short downturns in recent years. However, with advancements in blockchain technology and market changes, multiple signs indicate a potential new growth wave in 2025.
Market Review: From Highlights to a Cooling Phase
2021 was the peak for DeFi and NFTs, attracting countless investors and developers. According to DappRadar, DeFi’s TVL reached an all-time high of over $180 billion. However, the downturn started in 2022 due to macroeconomic changes, with TVL dropping to around $40 billion by 2023.
Current Signs: The Prelude to a Revival
Despite the downturn, 2024 shows that DeFi and NFTs have not lost value. Traditional financial giants like PayPal and BlackRock are entering the crypto space, increasing institutional participation. There is also a rise in on-chain activity and the diversification of NFT use cases.
Analysis: Why 2025 May Be a Turning Point?
Several factors suggest that 2025 could be a key year for the revival of DeFi and NFTs. The U.S. Federal Reserve's interest rate cuts and improved interoperability through cross-chain technologies are contributing to a stronger market.
Current signs suggest that 2025 may be a landmark year for DeFi and NFTs, indicating a maturing market and ongoing technological development.
